Startup chutzpah: Newbie scooter maker Ola leads India’s EV race

The dark horse of India’s battery race is pulling away from the pack, but can it beat the bookies’ favorite?

Ola Electric Mobility Pvt., a Bengaluru-based startup, will get state support to manufacture EV batteries that can store a total of 20 gigawatt-hours of power, the government said on March 24. Reliance Industries Ltd., the country’s largest conglomerate, will get subsidies for five gigawatt-hours. The upstart is getting 40% of the total capacity covered by New Delhi’s $2.4 billion in battery incentives over five years. The plan is to shave off $33 billion from the country’s fuel-import bill.

Paying firms to play has a checkered history in India: Favored companies invariably ask for protectionist cover. But with Brent crude oil at $120 a barrel, this particular gamble has some merit.